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Clarifying The Differences Between Digital Signature and Electronic Signature

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The world is increasingly digital, and people need a reliable way to sign documents without relying on pen and paper. As such, many businesses use digital signatures or electronic signatures as part of their day-to-day operations. Although both can be used to authenticate agreements, there are key differences between them that it’s important to understand.

Digital Signature

A digital signature is an encrypted piece of code attached to a document. The encryption process involves using mathematical algorithms to verify the authenticity of the document’s author and guarantee its contents remain unaltered. It is created using public key infrastructure (PKI) technology and requires users to possess two keys – one public and one private. In addition to verifying a document’s identity, digital signatures also timestamp documents to provide additional proof of authentication. Digital signatures have a greater level of security than electronic signatures because they cannot be forged or duplicated easily.

Electronic Signature

An electronic signature, on the other hand, does not require any encryption process. Instead, users simply input their name into a document along with other identifying information such as a date or time stamp for verification purposes. This type of signature is more cost-effective and easier for non-technical users but it offers less security than a digital signature since there are fewer methods in place to authenticate the document’s originator or its content. Furthermore, if someone were able to access the server hosting the documents, they could make alterations to the signed agreement without anyone knowing. 


Both digital and electronic signatures can help companies speed up processes while reducing paperwork costs, as well as add legal protection in case disputes arise down the line over who agreed what and when. However, depending on how much security you need in your business agreements, it may be necessary to opt for the stronger protection offered by digital signatures over those created using an electronic signature tool. Businesses looking for extra security might want to consider using a third party like DOQFY for creating digital signatures on documents as this can offer additional peace of mind that sensitive information remains safe from unauthorized eyes. 

Overall, understanding which kind of signature will work best for your business can save you time and money in the long run – so don’t overlook this detail when deciding which system works best for your company’s needs!

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